Coal Exports And CPO Down, This Is The Cause

Crude oil (Photo: dock. Antara)

JAKARTA - Commodity and Currency Observer Lukman Leong conveyed the weakening export value of crude palm oil (CPO) or palm oil due to a lawsuit with the European Union (EU) at the World Trade Organization (WTO).

"Yes, this lawsuit indirectly triggers expectations if the CPO price in the future can be cheaper. Importers can be seen holding back even though the inventory in China is already low," he explained to VOI, Wednesday, June 19.

Lukman said the CPO price would stay at the MYR level of 3,800 to MYR of 4,100 per ton with an upper range price at MYR of 4,000 per ton.

According to Lukman, the weakening of coal was due to pressure from India's demand, which would follow China's steps to increase production.

Meanwhile, Lukman said the price for coal would still be depressed by the recent dollar strengthening and coal prices would still be in the range of 120 US dollars-140 US dollars per ton.

Meanwhile, until the end of the year, the CPO price is projected to be in the range of MYR 4,000 per tonne and coal 130 US dollars per ton.

Previously, the Central Statistics Agency (BPS) recorded that Indonesia's export performance in May 2024 on a monthly basis or annually increased.

Meanwhile, Indonesia's export value in May 2024 amounted to 22.33 billion US dollars, an increase of 13.82 percent compared to the export value in April 2024 which amounted to 19.62 billion US dollars.

Meanwhile, when compared to May 2023, which reached 21.71 billion US dollars, the export value in May 2024 increased by 2.86 percent. This export performance was mainly supported by non-oil and gas (oil and gas) exports which reached 20.91 billion US dollars.

Deputy for Statistics for Production of BPS M. Habibullah said that in May 2024, the export value of superior commodities, namely coal exports and crude palm oil (CPO) and their derivatives experienced a sharp decline monthly and annually. Only iron and steel exports have increased.

"The export value of these three commodities will share around 27.66 percent of Indonesia's total non-oil and gas exports in May 2024," he explained at a press conference, Wednesday, June 19.

Meanwhile, the value of coal exports reached US$2.50 billion in May 2024. This value decreased by 4.04 percent on a monthly basis which reached US$2.61 billion, and decreased 16.85 percent compared to the same period last year which amounted to US$3.01 billion.

Meanwhile, the export value of CPO and its derivatives amounted to 1.08 billion US dollars in May 2024, or a decrease of 22.19 percent when compared to the previous month which reached 1.39 billion US dollars, and fell 27.11 percent when compared to the same period last year which amounted to 1.49 billion US dollars.

Meanwhile, exports of iron and steel amounted to USD 2.20 billion in May 2024, an increase of 1.22 percent compared to the previous month's USD 2.17 billion, and an increase of 8.30 percent compared to the same period last year of USD 2.03 billion.